P.T. Premium 5

Posted by Esq on November 6, 2006, 10:18 am

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When entering invoices in V5 - all ITEMS are automatically taxable even
when a customer is identified as non-taxable.

Is there a way, when a customer is NON-taxable, for all ITEMS to be
defaulted as non-taxable? Or must we continue to
to change all ITEMS as non taxable for every item on every invoice for every
non-taxable customer?

Thank You, in advance, for your response!
Brian

Posted by tlcg on November 7, 2006, 6:50 am

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Brian,

Not sure what state you're in, but our state taxes are designed that
the individual or business entity is what is exempt not the item, with
the exception of food. Food items are non-taxable.

The only time you would set up an item is non-taxable is if it truly is
non-taxable. There's no need to make your items non-taxable for exempt
customers invoices. The program will look at the taxable status of
that customer and will not charge tax if they are set up as exempt. If
you haven't already done so, set up a tax authority with a 0 amount and
a tax code (exempt or resale, etc) using that tax authority and then
assign this tax code to the customer on the general tab. This will
ensure that you don't have to change anything when you invoice this
customer.

Hope this helps :)

Esq wrote:

> When entering invoices in V5 - all ITEMS are automatically taxable even

> when a customer is identified as non-taxable.

> Is there a way, when a customer is NON-taxable, for all ITEMS to be

> defaulted as non-taxable? Or must we continue to

> to change all ITEMS as non taxable for every item on every invoice for every

> non-taxable customer?

> Thank You, in advance, for your response!

> Brian

Posted by Esq on November 7, 2006, 9:05 am

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Thank You for your reply!

I guess my issue lies with the reporting properties of exempt customers
items being reported as taxable sales.

It appears as if this $45.00 sale should have had tax collected, when in
fact it was just entered as a taxable item for an exempt customer.
Sure confuses bookeepers. (see report)
Back in the DOS days, an exempt customers items were all exempt, unless I
changed them.
Maybe its just my opinion items should be handled this way, & PT simply
cannot default exempt customers items as non taxable. It sure would be nice
though!

Thank You for your time!
Brian

Authority ID Authority Description Tax Rate Taxable Sale Tax Amount
Exempt Sales Total Sales
001 Texas Exempt 45.00 45.00
001 Texas Exempt 2,625.15 2,625.15
001 Total Texas Exempt 45.00 2,625.15 2,670.15

00TEXAS TEXAS 8.25000 6,304.25 520.09 6,304.25
00TEXAS Total TEXAS 6,304.25 520.09 6,304.25

> Brian,

> Not sure what state you're in, but our state taxes are designed that

> the individual or business entity is what is exempt not the item, with

> the exception of food. Food items are non-taxable.

> The only time you would set up an item is non-taxable is if it truly is

> non-taxable. There's no need to make your items non-taxable for exempt

> customers invoices. The program will look at the taxable status of

> that customer and will not charge tax if they are set up as exempt. If

> you haven't already done so, set up a tax authority with a 0 amount and

> a tax code (exempt or resale, etc) using that tax authority and then

> assign this tax code to the customer on the general tab. This will

> ensure that you don't have to change anything when you invoice this

> customer.

> Hope this helps :)

> Esq wrote:

>> When entering invoices in V5 - all ITEMS are automatically taxable even

>> when a customer is identified as non-taxable.

>> Is there a way, when a customer is NON-taxable, for all ITEMS to be

>> defaulted as non-taxable? Or must we continue to

>> to change all ITEMS as non taxable for every item on every invoice for

>> every

>> non-taxable customer?

>> Thank You, in advance, for your response!

>> Brian

Posted by GeoFru on November 7, 2006, 11:36 am

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Esq wrote:

> Thank You for your reply!

> I guess my issue lies with the reporting properties of exempt customers

> items being reported as taxable sales.

> It appears as if this $45.00 sale should have had tax collected, when in

> fact it was just entered as a taxable item for an exempt customer.

> Sure confuses bookeepers. (see report)

Brian:

This is the way it works in all states. (I've set up sales tax for 40
states for clients). Some states require reporting on the taxable items
sold to exempt organizations, usually totaled by the reason (resale,
govt, etc.).

When you report several states, it is sometimes useful to send an
electronic file to complete the quarterly sales tax reports, and then
you need to know the entries for exempt sales. If you 'simplify' and
don't report these, you lose more than your 'savings' when you get
audited. Sales tax audits are worse than IRS or those for state income.

Posted by TKnTexas on November 7, 2006, 8:12 pm

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I have wondered about the complexity of the large inventory systems
used by companies like Sysco Foods. As a hotel or restaurant, we are
tax-exempt for purposes of resale for consumable items (food) and for
related supply items (styro cups, guests napkins, to go containers) but
not for paper products used in the preparation area, or cleaning
supplies. But a tax exempt organization (a charity for example) would
be tax-exempt for anything they buy for the purpose of the
organization.

I know as the customer, I am a stickler for the vendor getting it right
about what my company should be taxed for .. it is all very convoluted.
Glad I am not the programmer.
TK

GeoFru wrote:

> Esq wrote:

> > Thank You for your reply!

> >

> > I guess my issue lies with the reporting properties of exempt customers

> > items being reported as taxable sales.

> >

> > It appears as if this $45.00 sale should have had tax collected, when in

> > fact it was just entered as a taxable item for an exempt customer.

> > Sure confuses bookeepers. (see report)

> Brian:

> This is the way it works in all states. (I've set up sales tax for 40

> states for clients). Some states require reporting on the taxable items

> sold to exempt organizations, usually totaled by the reason (resale,

> govt, etc.).

> When you report several states, it is sometimes useful to send an

> electronic file to complete the quarterly sales tax reports, and then

> you need to know the entries for exempt sales. If you 'simplify' and

> don't report these, you lose more than your 'savings' when you get

> audited. Sales tax audits are worse than IRS or those for state income.